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Post By
Late Great Donald Blake 
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Member Since: Sat May 17, 2008
Posts: 7,517
In Reply To
bd2999 
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Member Since: Sat May 17, 2008
Subj: Re: But suffice to say it's your estimation that there's nothing Biden can do?
Posted: Tue Jun 21, 2022 at 02:52:46 pm EDT (Viewed 179 times)
Reply Subj: Re: But suffice to say it's your estimation that there's nothing Biden can do?
Posted: Tue Jun 21, 2022 at 12:03:12 pm EDT (Viewed 195 times)

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    Quote:
    And there's nothing this administration did that was a major factor in terms of inflation?


Sure, but it depends on what train of thought you are coming from? Government spending for instances has been pointed to as one cause with the COVID relief bill at around $2 trillion.

It probably did factor in somewhere but it depends on what economists you want to go with and their perspectives. As large spending in the past has not always led to a high rate of inflation despite predictions.

And the Federal government has given large amounts of money to corporations and such for ages without having major impacts on inflation but it could be the straw that broke the camels back but at best, IMO, it is a contributing factor but not the primary factor.

The main thing arguing against it to me is that high inflation is not unique to the US.


    Quote:

    I'm writing a piece (starting a substack); just kind of getting a vibe for how liberals are narrativizing under the circumstances.


I am honestly just trying to understand things myself. Not intending there to be a narrative either way.

Everything I am seeing in general has cited supply chain issues where demand is outstriping supply coming out of COVID and things being made worse by Russia's war with Ukraine.

Those seem to be the major causes.

That does not mean that the administration has been perfect on acting. I am just not sure what more they could be doing, but I am not an economist either and the plans for dealing with the problem are often not realistic.

Increasing oil supply for instance is an idea for dealing with high oil prices, but it is not something you can just turn on and off at will in the US and if OPEC is taking little action than choices are limited.

Does not mean there will not be political blow back for it. I just am not of the mind that there is much any president could do in the present circumstances other than around the edges. A drop in demand would be needed to address the problem unless supply ramps up from somewhere.



I'm curious... who will be most affected by a FED instituted recession made to reduce inflation. From what I understand the economic orthodoxy you're referring to suggests that because demand is outstripping supply, inflation is increasing and so the only way to cool down the economy is to  cause a recession which among other things reduces wages and decreases thereby demand. So to stop working people from paying more for goods, we'll reduce the amount they have to spend. That's the basic idea, right?


cheers,
--- the late great Donald Blake